TRADE ALERT

 

2007 U.S. Harmonized Tariff System Changes – UPDATE II

 

(December 19, 2006)

 

Government sources indicate that the draft language of the Presidential Proclamation regarding changes to the U.S. Harmonized Tariff System states that the effective date will be February 1, 2007, or 30 days after publication in the Federal Register, whichever is later.  As soon as possible after the President signs the Proclamation implementing the changes, the ITC states it will post an updated electronic version on its Web site.  According to ITC sources, the 2007 HTS will initially be posted for review purposes only; it will contain the 10-digit tariff numbers, but will not go into effect until February 1, 2007, or 30 days after publication of the proclamation in the Federal Register, whichever is later.

 

U.S. Customs and Border Protection (CBP) has issued a notice stating that a blanket authorization will be offered 10 days prior to the effective date of the WCO tariff changes and will allow filers to take advantage of any lower duty rates contained  therein.

 

No instructions have yet been issued, but CBP sources state that the agency expects to provide a 15-day grace period after the implementation of the HTS changes for the refiling of entries rejected due to classification errors.

 

Additionally, other proclamations will be issued to implement various other changes to the 2007 HTS, including Chapter 99 tariff changes contained in recently passed H.R. 6111, and changes to the HTS Rules of Origin for various free trade agreements (FTAs) such as NAFTA.  Although the tariff changes are designed to ensure substantial rate neutrality, in certain instances the duty rate for a product may change.

 

Deringer's consulting & regulatory affairs group offers a full scope of services to support importers/exporters, carriers, and supply chain partners, and can assist importers in obtaining rulings and researching how these modifications may affect them.

For more information regarding this advisory, please call 518-297-3511, or email us at consulting@anderinger.com